When you choose a gold loan in Chennai, you enter a secured loan arrangement where your gold ornaments act as gold collateral. The gold loan process begins with a quality check of the gold, evaluating the gold rate today Chennai and determining the weight and purity.
Based on that value, the lender calculates the eligible amount using the loan‑to‑value ratio (LTV). Commonly the LTV may go up to 70‑75 %. The lender might also state a fixed gold loan per gram figure. After you accept the offer, documentation is completed and finally loan disbursement happens into your account, often the same day.
Loan tenure is typically short‑term, ranging from a few months to a year, though extensions may be permitted. As the loan is secured by your pledged jewellery, the risk for the lender is lower and processing is quicker than for unsecured loans. Always check how the current market gold rate and purities affect the value of your collateral.
You can get a gold loan from different local and online gold loan providers; however, each of them may offer varying interest rates and loan-to-value (LTV) ratios. Instead of visiting multiple local gold dealers, Bajaj Markets allows you to compare multiple lenders online. This helps you secure the best possible deal without the hassle of traveling to different branches.
Here are some of the key benefits of getting a gold loan from Bajaj Markets:
Fast Processing
A smooth digital application process ensures that your loan request is reviewed and approved quickly.
Minimal Documentation
The online system simplifies documentation, making the application process hassle-free.
No Hidden Fees
With Bajaj Markets, you get complete transparency, as there are no undisclosed charges.
Reliability
The gold loan process is conducted with full transparency, ensuring trust and peace of mind.
To estimate how much you can borrow via a gold loan in Chennai, start with the current market gold rate and your pledged jewellery’s net weight and purity:
Disclaimer: The calculation example provided is for illustrative purposes only and does not constitute a binding offer or guarantee. Actual amounts sanctioned under a gold loan may vary based on the jeweller’s assessment, prevailing gold rate today in Chennai, your chosen loan‑to‑value ratio, loan tenure, lender’s policies, and applicable fees.
The following table outlines the key fees and applicable charges you may encounter when availing a gold loan in Chennai reviewing these helps ensure clarity before the loan disbursement:
Fee Type |
Approximate Charge / Example |
Processing Fee |
Up to 1% of the disbursed amount at one bank. |
Valuation / Appraisal Charge |
For example: ₹300 for small loans, ₹700‑₹900 for larger sums at one lender. |
Foreclosure / Pre‑closure Charge |
Example: 2% of outstanding if repaid within 30 days at one bank. |
Documentation / Renewal Charges |
Example: ₹350 renewal fee + applicable taxes at one institution. |
Top‑Up / Renewal / Continuation Fee |
Example: 1% of top‑up amount (minimum ₹250) for one lender’s gold‑loan facility. |
Disclaimer: These figures are illustrative samples from specific banks. Actual charges in Chennai will vary by lender, loan amount, gold quality, and date. Always verify the current schedule of charges before proceeding.
A gold loan is a secured loan backed by your gold jewellery as gold collateral, making the lending process faster and documentation simpler compared with many unsecured loans. Because the lender holds the collateral, risk is lower for them and that often translates into quicker loan disbursement.
Many borrowers in Chennai prefer this option when they have an instant cash requirement, given its lower interest rates and no income proof needed, and because the value of the pledged gold may benefit from gold value appreciation. With flexible repayment including easy loan renewal and “top‑up” options, the loan tenure is often manageable and shorter term.
The assured nature of collateral‑backed security appeals in a region where gold traditions are strong. Moreover, since the loan‑to‑value ratio (for example up to 75 %) is defined by regulations, borrowers can more reliably estimate how much they can borrow. For people with genuine short‑term cash needs, a well‑managed gold loan can be a feasible borrowing option, provided they understand the process, charges and their repayment capacity.
Calculate the amount by multiplying the current market gold rate per gram by the purity factor (e.g., 22k is 22/24) and then by the allowable loan‑to‑value ratio.
Any Indian citizen who is at least 18 years old and owns gold with a minimum purity of 18 karats can apply for a gold loan.
Gold loan interest rates on Bajaj Markets start from 9.48%. You can apply online, from whichever city you come from.
The loan per gram depends on the current gold rate. Check for the current rate for 22 karat gold in Chennai, on Bajaj Markets.